Interesting view from Neils Jensen at Absolute Return Partners in the UK:
Nicola Sturgeon has recently called for a second Scottish independence referendum, this time using Brexit as the excuse. She cannot keep calling for a referendum every time she doesn’t get the outcome she so badly wants, but she has a point. Brexit does indeed change things quite fundamentally.
The point Sturgeon has chosen to disregard, or at least has chosen not to bring up in the public domain, is that Scotland can hardly afford the independence that she so desperately seeks. Scotland runs a fiscal deficit of about 9.5% of GDP at present and only survives because of grants from London. Yet, she has promised a significant increase in welfare spending in an independent Scotland. Her case was a great deal stronger when oil prices hovered around $120-130 per barrel. With oil prices around $50, she has no case at all…..